question 8 (2 points)\ntransaction 7 - melanie nelson invested an additional $3,000 cash in the…

question 8 (2 points)\ntransaction 7 - melanie nelson invested an additional $3,000 cash in the business\ncolumn a\n1. what account is debited?\n2. what account is credited?\ncolumn b\na. cash in bank\nb. melanie nelson, capital

question 8 (2 points)\ntransaction 7 - melanie nelson invested an additional $3,000 cash in the business\ncolumn a\n1. what account is debited?\n2. what account is credited?\ncolumn b\na. cash in bank\nb. melanie nelson, capital

Answer

Brief Explanations:

When an owner invests cash into the business, the cash - an asset - increases and is debited. The owner's equity account, which represents the owner's claim on the business, also increases and is credited. In this case, the cash received is debited to the Cash in Bank account and the owner's capital account (Melanie Nelson, Capital) is credited.

Answer:

  1. a. Cash in Bank
  2. b. Melanie Nelson, Capital